disserattion on value perception on the use of mobile services

8/12/2019 Disserattion on Value Perception on the use of mobile services

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ACKNOWLEDEGEMENT

First of all, from the depth of my heart I would honestly use this opportunity to thank my supervisor,

Dr. Amit Mitra, for his constant guidance and ever enduring patience. In all my life, I have never

seen a man with such patience and calmness in giving out his instructions. Without his supervision

and calm approach to issues, my research would have been an incomplete piece of work.

I owe a lot to my brother, friend, boss, mentor, sponsor and guardian, Mr. Sam Okwulehie, for his

relentless hope in me, financial and moral support during my journey here in a foreign land. I admire

you a lot.

I wish to thank my mum, Mrs Ijeoma Onyebuchi Nwoji, for all her prayers, and also my big

brother, Dr. Uchenna Onyebuchi, for his entire professional writing guidance which he offered and

my dearest housemates and friends in Bristol. Thank you for all the encouragement and attentions I

got from you all.

Finally, I give all honour to my heavenly father and creator for his constant love and grace which

enabled me to finish up this research. I am grateful for all your love and support


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TABLE OF CONTENT

CHAPTER 1 - INTRODUCTION 7

1.0Introduction. 7

1.1 Overview of

Nigeria... 8

1.2 Evolution of the Mobile

Industry.. . 8

1.3 GSM Operators in

Nigeria. 11

1.3.1 MTN

... 11


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1.3.2 GLO

Nigeria 11

1.3.3 Airtel

12

1.3.4 Etisalat

.. 13

1.4 3g Mobile Services (Concept &

Evolution) 13

1.5 3g Technology. 15

1.6 Importance of the Research. 16

1.7 Research Questions.. 17

1.8 Structure of the

thesis.. 18

CHAPTER 2LITERTAURE REVIEW..21

2.0 Mobile Value Services Identification 21

2.1 Value Creation as a Key to Competitive Capabilities.25

2.2 Definition of Customer Perceived Value 32

2.2.1 Customer Behavior... 32

2.2.2 Brief Discussion in the Value Dimension..35

2.3 Research Model & Hypothesis Development. 38

2.3.1 Technology Acceptance Model.. 40

2.4 Proposed Hypothesis. 43

2.4.1 Perceived Usefulness & Perceived Ease of Use.. 43


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2.4.2 Attitude towards Usage 45

2.4.3 Social Influence 46

2.4.4 Perceived Enjoyment 47

CHAPTER 3 - METHODOLOGY.49

3.0 Measurement Instrument.. 49

3.1 Sample and Data Collection Procedure.49

3.1.1 Sample Selection 51

3.1.2 Sample Technique 52

3.1.3 Questionnaire Structure.54

CHAPTER 4DATA ANALYSIS...............55

4.0 Respondents Demographic Analysis55

4.1 Reliability Analysis61

4.2 Pearson Correlation Analysis63

4.3 Multiple Regression Analysis 65

4.4 Hypothesis Testing66

CHAPTER 5DISCUSSION & CONCLUSION ..69

5.0 Discussion.69

5.1 Practical Implication.70

5.2 Limitation 72

5.3 Conclusion73

REFERENCES 74

APPENDIX ..


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A. Summary of Respondents

B. Reliability Analysis

C. Questionnaire Sample

D. Correlation Analysis

E. Multiple Regression Analysis

LIST OF TABLES:

Table 1: Formulated Table for 3g Mobile Services Selection. 24

Table 2: Research Proposed 3g Mobile Services Categorization 25

Table 3: External Factors Affecting Usage.. 58

Table 4: Current Usage of 3g Mobile Added Services by Respondents... 58-59

Table 5: Demographic Characteristics of Respondents.60-61

Table 6: Cronbach Alpha Value of Summated Factors.. ..62

Table 7: Bivariate Correlation Results.. 63-64

Table 8: Social Influence Value Frequency..67

Table 9: Multiply Correlation Summary of ATU & PU 68

CHAPTER ONE

INTRODUCTION

1.0. Background of Study

Posed with the impact of Globalization, mobilization and individual increasing demand for instant

services are the trends changing the way people source information and services while on the move.

Voice calls in the Nigeria mobile market, has reached its point of saturation, due to number of

reasons, such as increasing number of competitors, using tariff cut to gain market share and

dominance. The saturation caused by the market competition, in other words, gave a sharp decline in

the average revenue per users of the network operators. This raised the issue for an alternate source


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of revenue in the mobile market, bringing about the introduction of 3G mobile technology to

improve mobile services. Globally, consumers and content providers have now come to realize that

mobile phone are devices which cannot only be used for making calls, rather they are now

personalized or customized tools for effective delivery of services or wants. Mobile value added

services is the future in which the telecommunication industry is living in at the moment, and from

the look of things it has come to stay, because it has brought about innovative diversified usage of

the mobile phone. In Nigeria today, mobile phone users have access to variety of value added

services enabled by existing network providers via SMS, USSD, GPRS and Internet platforms.

Internet is increasing information to be published at a global scale, which can now be easily accessed

with a touch of a button, while the SMS platform which provides mobile subscribers with interactive

based mobile services.

From a business point of view, MVAS offers some kind of services, which offers personal value to

the user, and the subscribers are willing to pay a price premium for the services.

Past studies and Literatures have said a lot on the advancement of mobile Technology and its

acceptance in the developing countries, while neglecting issues concerning end-users and the choices

they make towards their intention to use these services. In a nut-shell, this research will pay close

attention on perceived value definition, factors or drivers which motivates consumers adoption of

selected services that emerged with the introduction of 3G technology

1.1 OVERVIEW OF NIGERIAN

Nigeria has the largest population in Africa, with over a 150million inhabitant, making it the most

populous nation in West Africa and the eighth most populous county in the World. According to a

United Nations (2004) population projection, the country will have a population estimate of 210m in

the year 2025, which would likely make it the sixth largest in the world. Nigeria has one of the most

ethnically diverse populations in the world. The nation is known for its abundant variety of customs,


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languages and ethnic groups. Two main Religious groups dominates most in the society, which are

the Islam and Christians, representing the three largest ethnic groups being the Hausa, Igbo and

Yoruba, which together account for about 70% of the population. The Hausas make up the larger

part of the population, being predominantly Muslims from the northern part of Nigeria, Igbos are

predominant in the south-east, while the Yorubasare pre-dominant in the south-west. The official

communication language in the country is English, although most times, it is a common thing seeing

indigenes who can speak two or more local languages.

Nigerians population is made up most of the working population or active age bracket (15-65), being

55% of the population, while the dependent age bracket (0-14), is about 42%, and 3% make up for

the age bracket above 65 (Pyramid Research, 2010, Pg. 24.The Impact of Mobile Services in

Nigeria)

Economically, the countrys oil and gas sector accounts for the major share of its GDP Growth.

According to the Nigerian Bureau of Statistics (2012), oil and mineral resources accounted for 94%

of the nations export. Although in the past decade, an annual growth rate of 7.4% has been

recorded, which also have remained huge up till 2011 (African Economic Outlook, 2012 Pg. 2). This

growth is attributed to different non-oil sectors such a telecommunication, agriculture, retail & trade,

and manufacturing sector.

Currently, Nigerian Currency Naira (N) value, is estimated to be about N157 per US dollar and

N270 per British Pounds, compared to the N127 per US Dollars and N210 in 2006 . The countries

currency value depreciated significantly in 2008, as a result of the global economic downturn and

sharp decline in the prices of oil.

1.2 EVOLUTIION OF THE MOBILE INDUSTRY

The Nigerian mobile industry over the decade ,have experienced a massive boom, which was mainly

because of the successful liberalization and privatization program of the newly elected democratic


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government then under President Olusegun Obasanjo in 2001, which issued the first set of GSM

licenses. Currently, Nigeria has five active GSM operators namely: MTN, GLO, ETISALAT,

MTEL, ZAIN, with an inclusion of smaller CDMA operators. The First three names, MTN, GLO,

and ETISALAT are the top mobile operators and they account for 90% of mobile subscription in the

country. Due to the successful liberalization of the sector, which resulted to massive competition

among the operators, which was beneficial to the end-users/subscribers in terms of reduced call

tariffs and possibility for subscribers varietyof choices on which operatorsservice to use. Before

the emergence of the GSM market, Nigerian Telecommunication Limited (NITEL) was the principal

telecommunication company owned by the Federal Government with sole responsibility in providing

wired phone technology in the country.

The mobile sector in Nigeria has seen a rapid pace in its market share, increasing from a total of

422,000 subscribers from its inception in 2001 to about 101 million at the end of 2011 (Pyramid

Research, 2012 Pg. 27). This figure according to the Nigerian Communication Commission (NCC) is

measured in-terms mobile subscription. Driving factors such as intense competition as a result of

more than one licensed operators, low-cost handsets, and increasing coverage of mobile network

services across the nation, mostly in the rural areas, service quality, have all been major contributors

in the subscription growth rate.

Prepaid mobile services has been very popular and turned out to be the most common payment type

since the emergence of GSM technology in Nigeria. Prepaid Subscribers account for about 99.6% all

subscription, since the country has no Mobile Virtual Network Operators (MVNOs)

Due to lack of Fixed Line Internet Service provider companies in the country, Mobile Networks have

seized the opportunity to provide internet options for both businesses and individuals. GSM

operators such as MTN, GLO, and ETISALAT have also taken on the same route in providing

mobile internet through the use of UMTS-based services (Nigeria Bureau of Statistics, 2012).


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1.3. NIGERIA FOUR MAJOR GSM OPERATORS AND THERE COMPETITIVE STRENGTH

1.5.1 MTN NIGERIA

MTN Nigeria is a subsidiary of MTN international which launched its GSM services in the country in

2001. The operator also provides 2.5G (GPRS) services. At present, it is the largest operator in terms

of subscribers. Its network covered more than 58 percent of the total population of Nigeria at end-

March 2005 and 42% at end-year 2009, compared to its rivals GLO Mobile (23%) and AIRTEL

(formerly known as ZAIN) (21%) (Pyramid research, 2012, Pg. 29). By the end-year 2005, MTN

had already invested $1.8 billion on its network infrastructure to accommodate its increasing

subscriber base and solve the issue of network congestion. Over the years, MTN managed to

maintain its leading position as the operator with the largest subscription base by making huge

investments on aggressive network roll-outs and pioneer introducers of value added services such as

mobile ring-tones, mobile browsers, video cam, and SIM backup services and multi-media services.

1.3.2 GLOBACOM

Globacom is one of the Africa's fastest growing telecommunications company. Owned by the Mike

Adenuga Group, making it a 100% Nigerian owned company. Globacom also operates in the

Republic of Benin and has recently acquired licenses to operate in Ghana and the Ivory Coast. It has

a reputation as one of the fastest growing mobile service providers in the world. Globacom came into

the Nigeria mobile scene in the year 2002 as the countries second national operator, two years behind

it rivals, MTN and AIRTEL (then ZAIN MOBILE). Globacom experienced a significant market

from 9.3% in 2003 to 22.7% in 2009; this was mainly due to its competitive tariff price-cut rates

(Pyramid Research, 2012 Pg. 31). Its marketing tool has been on provision of airtime bonuses,

introduction of per-second billing, compared to its rivals per-minute billing, celebrity endorsements

on its adverts influencing buyers, mass sponsorship on social responsibility such as the countries

soccer league, and the introduction of lower-denomination scratch cards which allowed low-income

earners to pay less or installment for starter phone packs.


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1.3.3 AIRTEL

Formerly known as ZAIN mobile, launched its first operation in Nigeria in 2001 under the brand

name Vmobile. Vmobile then was under the umbrella of Wireless Communication giants known as

Eco net Wireless Nigeria, which had about 25% of total subscribersbase at the year-end 2004. The

share-holders structure of Vmobile was divided between private investors/institutions and state at 60

to 40 percent respectively. Zain later took over control, and then later resold over a short period of

time to the Indian company ''AIRTEL'' in 2010. Despite known for its series of management and

staff problems, it has still made its significant mark in the market. In 2008, Airtel, then Zain,

overtook Globacom to be in the second position as the leader player, through its rebranding exercises

such as, introduction of ultra-low-cost handset projects which brought some phone prices as low as

$20 in the Nigeria Market. Initiatives such as introduction of value added services and its program

which offered on-net tariff to the Nigeria police and military gained them a major market share (Pan

African Capital Research, 2011).

1.3.4 ETISALAT

Etisalat Nigeria is the fifth licensed GSM operator, which was launched in 2008, with operations in

countries such as UAE, Egypt, Afghanistan, Sudan, Chad, and Central African Republic. In 2008,

etisalat kick-started its campaign with the innovative 0809uchoose services, which allowed pioneer

customers to choose the numbers they wanted or special to them as there phone numbers. It also

introduced the Etisalat home zone which enabled subscribers to choose location on the Etisalat

network where they can make calls to all networks at 20% discount. Offers such as Etisalat

9javaganza whereby new customers simply buy an Etisalat SIM for NGN 200 (1) and get a NGN

200 equivalent free airtime. Etisalat reached its subscription mark of 1million in June 2009, less than

one year of its launch. In other to win customers from already existing or established mobile


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operators, Etisalat provided value added services such as call forwarding and barring, SMS to

Facebook, and there most popular EazyWallet, which is an innovative SIM application with a single

interface to access and operate mobile money accounts. It is built with latest security and technology

available and requires no installation, download or codes.

With Eazywallet you can carry out transactions such as airtime top up, money transfer, bill payments

etc. At the end-year of 2011, Etisalat has current base of 10million subscribers (NCC, 2012).

1.4 MOBILE VALUE SERVICES IN NIGERIA (CONCEPT AND EVOLUTION)

In a simple context, mobile value added services are all services beyond standard voice calls and fax

transmissions. In other words, these added services provides an extra value to the customers, which

makes the subscriber willing to pay more or can be said to be an add-on to basic services and as such

can be sold at premium prices. In the telecommunication industry, on a conceptual level, value-added

services add valueto the already established phone offers, increasing the subscribersappetite to use

their phone more and allowing the operator to drive up theirrevenue. Globally, there are two most

popular value added services which are the SMS and MMS, even though there are hundreds of others

in existence, differing among different countries. Service operators in Nigeria now see the need

to focus on value added services to survive the cut throat competition facing them. Currently in

Nigeria, there are diverse value added services like mobile phone book back-up, SMS, ring-tone and

music download, Facebook , Vehicle tracking system, and the very successful caller tunes, which has

shown providers, that with a little effort subscribers are willing to adopt a service which offers them

personalized options.

In the early 2008 and end-year 2009, SMS and MMS became very popular among urban residents in

the country. Services such as caller back ring-tones, mobile internet, music and ringtone download,

also had a jump start in its adoption among subscribers in the urban city. Currently so many mobile


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value added services have been witnessed to stay, such as social networking, email-push and

messenger via Blackberry, and finally banking and credit transaction. Putting Mobile Value Added

Services in a more simplified form

To the Housewife MVAS is the SMS that enables her to vote or participate in Big Brother Africa

TV Show or The Nigerian Idols

To a Working Class Individual MVAS means continuous flow of email he receives from his

Blackberry

To a College student, MVAS means all the Nigeria and Foreign songs he/she downloads to use as

her personalized ring-tone or share with friends

To the University students, MVAS means the access and convenience of using social sites such as

Facebook, twitter, BlackBerry Instant Messenger, and the ability to watch videos online.

To the Local Trader, MVAS is the credit and debit alert which he continuously receives from his

bank after any transaction is made.

To the Mail Delivery Man, MVAS is the GPRS or location based services which directs him

around delivery route

To the sports fanatic, MVAS is the daily English Premiership and UEFA championship scores,

transfers and news update.

1.5 3G TECHNOLOGIES

The term 3G stands for Third Generation of Mobile Technologies, which normally comes with

an enhancement regarding its transmission in speed, and advanced access to multi-media contents

or in other words can be defined as an enhanced telecommunication system aimed at increasing

efficiency and improving the performance of mobile wireless networks (Udo-Udoma & Belo-Osagie,


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2006). 3G are mostly associated with mobile phones and devices serving as a platform for

connectivity to the internet or IP networks, in initiating internet related services. 3G technology was

first introduced in Nigeria in 2007 by the Nigeria Communication Commission, to two already

existing independent network operators. Some of the services supported by the 3G technology range

from multimedia, voice & file data, and video streaming services, broad Bandwidth and high speed

internet access via mobile phones irrespective of consumers location and time. Yet, ever since its

introduction into the Nigeria market, service operators have not given much effort in explaining

exact details of it features and the advantages it creates for the emerging mobile market. 3G

compatible phones can perform lots of value added services ranging from quick access to the

internet, music and video on demand, music download and sharing,

3D mobile games and location based services. Putting it in a more clearer picture, mobile subscribers

connected to a 3G network, have the capability of transferring data speed, up to 3Mbps (Mega-bytes

per second), which is equivalent of a 4mins MP3 song being downloaded in 15 seconds.

1.6 IMPORTANCE OF THE RESEARCH

Over the last 5 years (2009-2012), the Nigeria telecommunication sector, have been tagged as the

fastest growing sector in Africa, having experienced a favorable progress in mobile internet services

both in terms of application development, usage and technological acceptance in the society. The

introduction of mobile value added services such as social networking Apps, mobile-transactions, e-

mail push and updates, have been made possible through the 3G technology, offering faster mobile

internet services. Prior to the pass 5 years, mobile operators and industry stakeholders, saw the need

to maximize the advantage which the 3G technology offers, through development of innovative

services that will appeal to the mobile subscribers. Mobile phones have gone beyond their

communized role of voice calls, whereby, gradually turning it to be a tool of personalization for the

end-user. Consumersperception and adoption of a mobile network, is not only from the voice and


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network coverage viewpoint, but now has become a factor of value created by the network operators

via the phones. Among the value added services, which the 3G technology have developed,

entertainment and information VAS seems to be enjoying the market most, because it designed to

appeal to the market emotional, while more advanced utility VAS such as mobile & online payment

and transactions denoted for the practical value which they possess on the consumers are gradually

making a name for itself in the market. Therefore as the case may be, there is need to look into

researches on what really inclines consumers on using these 3g value added services, which in-turn,

answers to it, is beneficiary to the service providers.

Traditionally, adoption of a service is mostly attributed to development and acceptance of a new

technology, which in the first place, brought about the introduction of 3G technology which supports

high speed data transfer over a broadband network to facilitate multimedia services.

But the truth still remains that 3G only facilitates bandwidth, which cannot be said to be the sole

reason why people use the services which it offers. The major concern for service providers is to

develop services with contents that consumers will continuously desire and need.

Holding on the fact that 3g VAS is an emerging business model in the Nigeria telecommunication

sector, demanding a new consumers market, there is need to know what attitudinal influences or

perceived values which drive Nigerian consumers to use these services. Answers sort out will

determine how much Nigeria consumers know about these services, and what quantity of it is

actually be utilized in the society at large.

1.7 RESEARCH QUESTIONS


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Does perceived usefulness and ease of use have an influence on mobile phone subscribers

intention to use mobile value added services?

What value perception influences the use of MVAS in Nigeria the most?

What is consumers level of awareness and usage of available value added services?

Are consumers satisfied with the current services offered to them?

What are the challenges faced by mobile phone subscribers regarding the use of 3g MVAS?

1.8 STRUCTURE OF THE THESIS

The research body will be divided into 5 chapters, consisting of tables and appendixes to support the

analysis and findings of the study. An overview of all chapters is stated below.

Chapter 1 gives an overview of the Nigerian mobile market, its major players and their market

strength. The chapter further discussed evolution of mobile service in the Nigerian economy. Much

detail deliberation of Mobile Value added service, including its categories and an explanation of 3G

technology where also given. Further highlighting on the purpose of the study and its importance to

the mobile community was not left out.

Chapter 11 focused on the description of terms via reviewed related literatures. Broad heads such

Published Books, Articles, Research Papers, thesis and Dissertations were used for the review. The

chapter looked to identify 3G mobile services, relationship between perceived value and consumers

behaviors and its relationship with identified research theories and constructs such as buying

decisions of consumers, consequences of value added services, and consumption classification of the

mobile services. Below are major sub-headings of the Chapter:

3G Mobile Value Added Services Identification

Need for Value Creation


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Perceived Value Definition

Relationship Between Perceived Value and Consumer Behavior in Mobile Context

Chapter 3 deals with the identification of research model and hypothesis development. The

Technology Acceptance Model was used as the main construct on which the research hypothesis was

developed. Below is the outlined study hypothesis

HI: Perceived Usefulness has a Significant Effect on Consumers Attitude to use 3G Mobile

Services

H2: Perceived Ease of Use has a Significant effect on Consumers Attitude to use 3G Mobile

Services

H3: Perceived Usefulness has a direct significant effect on consumer intention to use 3G

mobile services.

H4: Users Attitude Towards 3G Mobile Services has a significant effect on Behavioural

Intention to Use the Services.

H5: Social Influences have a positive significant effect on consumers behavioural intention to

use 3G Mobile Services

H6:Perceievd Enjoyment has a significant effect on consumers behavioural intention to use

3G mobile services

H7: Perceived Enjoyment has a significant effect on attitudes towards the adoption of 3G

mobile services.

For purpose of data collection, a structured online survey will be carried out, targeting mobile phone

subscribers of various networks. The data collection targeted respondents with active Facebook and

email accounts, whereby a 2 Part structured questionnaire where distributed via an online survey tool

known as Google survey

The core contains of the chapter are discussion s regarding formation of research hypothesis, study

scope, research participants, research design, and the actual data collection.


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Chapter 4 analyses the data which was gotten from the online survey using the statistical tool

known as SPSS. Three analytical tests were carried out to measure the significance of the survey,

and they are: Cronbach Alpha test, Pearson Correlation, and the multiple regression analysis.

The Cronbach Alpha test was used to test the reliability or internal consistency between the multiple

item scales which were used in the survey representing a single construct.

The Pearson correlation and multiple regressions were both used to test the relationship between the

various research variables and there level of significant influence among each other.

Also a demographic descriptive analysis of the survey respondents is carried out using percentiles,

tables and graphs.

Chapter 5 is the final and last chapter of the study which comprises of the discussion made of the

research, its managerial and implication, limitation of the study, further studies to be made and

finally its researchersconclusion on the study.

CHAPTER 11

LITERATURE

2.0 MOBILE VALUE SERVICES IDENTIFICATION


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With regards to the research and for the purpose of definition, mobile value added services (MVAS)

can simply be defined in telecommunication industry terms, as non-core services, or in-short, all

services beyond standard voice calls and short messages. Some of the innovative services 3G mobile

value added services offers, cover several economic and social domains in different platforms such

as m-Banking, m-Commerce, m-Entertainment, and m-Information.

Most at times consumers have difficulty in expressing their needs, so as much, it is great importance

having a research anticipating consumers needs and motives behind their decisions to use mobile

services in a value context. Understanding customer value influences of mobile services plays a

crucial role in predicting behavioural intention to use. Perceived customer value which exceeds

usage expectation leads to creating a positive attitude about product, which in turn leads to customer

intention to use and loyalty to the service providers.

The major area of study of the research is most concerned with how perceived value influences

consumers intention to use mobile VAS. The literature looks into definitions and past industrial and

academic studies made on perceived value; consumer behaviour and its relationship with 3g mobile

value added services, and the need for value creation.

This section of the study is divided into four sections which look into academic and industrial

literatures aimed to identify and categorise existing and new mobile services in the Nigerian market,

definition of terms, research models, and structuring of the study hypothesis.

2.0 IDENTIFICATION OF 3G MOBILE VALUE ADDED SERVICES CATEGORIES


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According to Heinemann and Minna Pura (2006), he described mobile services as services that

differ from the basic traditional services in their ability to provide service offerings regardless of

temporal and spatial constraints being accessed via a mobile phone. Classification of mobile services

were based on Consumption Type, Context of Use, Social Setting, and finally relationship

between service provider and consumers (Heinemann and Minna Pura, 2006, Pg. 4).

Carlsson et al (2005) in his study Asynchronous Adoption Patterns of Mobile Services looked

into the supply and adoption rate of 3G mobile services in Europe, through the analysis of empirical

data from Finland. In his study, Carlsson et al (2005, Pg. 2), posited that attitude is the most

significant factor in determining mobile services adoption. Attitude towards a new technology was a

major significant predictor, which are greatly influenced by social demographic variables such as age

and sex, social influences and perceived usefulness of the provided services. As a result of the

identified variables influencing usage of services , Carlsson (2005) categorised mobile services into

communication (SMS,MMS, Mobile-email, Blackberry Messenger), entertainment (Ringtones, Icons

& Logos, Music download & Listening, Games, Mobile TV), reservation & purchases (M-banking,

Bill Payments, & Ticket Reservation), information ( Internet Browser, Calendar, Calculator, Mobile

Ads), and finally an extension of a category which he called community category (Facebook and

Twitter). The community category according to Stefano Chatziagapis (2008, pg. 18) are services

with the ability of sharing digital contents between users. Contents such as photo uploads, status

update, videos, music, and posting of comments are major characteristics of the services. One major

example of a service in this category is social networks such as Facebook, MySpace, and Twitter,

which has being the most widely used in the past 5years. A study made by Cherie Blair Foundation

for Women (2008), which looks into the development of women entrepreneurship with the use of

value added services in developing markets such as Africa, middle-east and Asia grouped mobile

services addressing entrepreneur challenges as: Communication, M-Commerce/Transaction, and

Infotainment. This mentioned category is a more compressed version of the Carlsson (2005)

category, with the existence of the equal services sub-divided into 3 overlapping groups.


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Yoon, J.I, Suh, H.S. et a (2003), on a study made on customer satisfaction with mobile services,

categorised mobile services in four distinct categories, which were: communication (SMS, live

messenger, & e-mail), entertainment (Music & Video download, games, Call back ringtones),

information (news, soccer & weather updates), and transaction (m-banking, utility payment, and

reservations). In a similar survey carried out by Pagani (2004) on the adoption of 3G mobile services

in Italian market, grouped mobile services into six (6) categories. The categories are Personal Funds

Management, Data Exchange, Remote Control of Place and Objects, Contextual and Real time

Shopping, Real time Playing and Location-based Services.

Past literatures made on the subject matter, gives an overview of major predominant and emerging

3g value added services in the current market. Due to the fact that past literatures on mobile services

classification, included almost the same set of services but categorised differently, my research saw

the need to propose its own category constructs, through making an extension of most appeared

services in past literature, modified into a 3 distinct groups (Entertainment, Infotainment, & M-

Transactions) making Carlsson et al (2005) classification scheme as the independent variable..

RESEARCH PROPOSED 3G MOBI LE SERVICE CATEGORIES:

Table 1. Formulated table for 3g mobile services selection.

Se rvi ce Cate gory Mobi le Se rvi ce s Stefano (2008) Cheire Blair (2008) Yoon et al (2003) Pagani (2004) Leem et al (2004) Frequency

Sms * * * * * 5

mms * * * * * 5

commuincation E-mail Push * * * * * 5

Instant Messenger * * * * * 5

*

Ringtones * * * * * 5

Entertainment Icons, Themes & Logos * * * * 4

Music & Video Downloads * * * * 5

Mobile TV * * * 4

Reservation & Purchase Mobile Banking * * * * * 5

Mobile-Payments * * * * 4

Ticket Reservation * * * * 4

Online Shopping * * * * * 5

Internet/Wap Browser * * * * * 5

Information Calendar & Calculator * * 2

Location Based Services * * * 4

Mobile Advertisments * * * * * 5

Commuinty Facebook * * * * * 5

Myspace * * * 3

Twitter * * * * * 5

Black-Berry Messenger * * * * 4


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From the above diagram, services where purposely selected from past researches, and services that

had more than 3 occurrences in the formulated table were selected for the course of the study as long

as they existed in the Nigerian telecom system and sub-divided into existing and new mobile services

and then into 3 distinct categories: Entertainment, Infotainment, and Mobile-Transactions.

For the purpose of the study, mobile services are categorised into 3 constructs: Infotainment,

Communication, and Mobile-Transactions.

The infotainment service category according to service operators is seen as a more useful and

pragmatic way of integrating two or more distinct contents into one service package. Some of the

well-established services in this category are (SMS, MMS, Music & Ringtone Downloads, Games,

themes, CBRT), also strong emerging services such as SMS voting contest, related to users

participation in media channels

Table 2. Research Proposed 3g Mobile Services Categorization

EXISTING SERVICES EMERGING SERVICES

Games Facebook

SMS Contest Vote Twitter

Call Back Ringtones Mobile TV

Infortainment Logo, Wallpaper, & Themes IVR Prenium Services

Music Download Online Radio

Music on Demand

SMS Black Berry Messenger

MMS Location Based Services

Communication GPRS/EDGE Vehicle Tracking

Email Push Mobile Navigation system

Family & Friends

Credit Alert mobile banking & payment

M-Transactions E-top up ticket reservation

Mobile Advertising online shopping


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. According to a research by Maren Hartmann et al (2008, Pg. 74), on Social Changes and

Development of Mobile Services, whereby they succeeded in making a distinction on what people

do with content rather than what contents do to people.

Maren Hartmann et al (2008), described media oriented infotainment contents, as constituting cross-

media strategies, which allows co-ordinated functionalities of web-sites, SMS, TV, and Printed

media in TV contest, live TV shows and Debate programmes. Some of the emerging 3g mobile

value added services are: mobile banking, bill payment, subscription services such as news,

horoscope, weather report, online shopping, making reservation, advance ticket purchase, and online

dating services.

2.1 VALUE CREATION AS A KEY TO COMPETITIVE CAPAPBILITIES

Fernandez, Z & Usero, B. (2009) in his research titled Competitive Behaviour in the European

Mobile Telecommunication Industry, studied the relationship between competitive strategy and

improvement in the mobile sector with regards to those he tagged as Pioneer and then

followers. According to Zulima Fernandez (2009), competitive strategies which are totally

different from that of rival firms, other than price reduction, allows firms to gain market share.

Conclusion made out of the study identified differentiation as the most effective strategy for existing

firms in the long run.

According to Barney (1999), a firm is said to have competitive advantage when it is implementing a

value creating strategy not simultaneously being implanted by a current or potential competitors.

Barney (1999), in his article gave an example with assumption of an industry where firms possess


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exactly the same amount of strategically relevant human labour, and organizational capital. Barney

(1999) proposed the need for a resource based capabilities to distinguish firms potential (Pg.105).

Such capabilities are however valuable, in the sense of its exploitation of opportunities rare, and

imperfectly imitable (Barney 1991, Pg. 106)

Michael Porter (2004) supported the positioning resource view, through explanation with his

Porters Five Forces, which he used in identifying threats and opportunities faced by firms in a

competitive environment. According to Porter (2004), firms knowledge of its capabilities will

highlight areas where the firm should or should not confront competition (Pg. 30).

Five disturbing factors identified by Porter include:

Threats of New Entry

Rivalry among existing firms

Threats of Substitute Product

Bargaining power of suppliers and buyers

Once these factors are identified, Porter (2004) supports the approach of firms positioning its

capabilities to provide the best defence against existing array of competitive forces.

Mobile telecommunication industry according to Barry (1991) is an industry characterised by similar

strategically competitive strength among existing firms in terms of capital, manpower, and

organisational concept. In order for firms to counter the five forces of threat, which led to

underperformance of available resources, Porter (2004), identified Three (3) internally consistent

generic strategies ( which can be used singly or in combination) for creating a defendable position in

the long run, outperforming competitors in the industry (Pg. 34). These three Strategies are: Cost

Leadership, Differentiation and Finally, a combination of the two (Not really advisable)


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Aggressive construction of efficient scale facilities, pursuit of cost reduction and cost minimization

in areas such as research and development, sales and advertising are so much required to achieve

cost leadership (Porter 2004, Pg. 35). Differentiation on the other hand, is subjected to focus on

services being offered by firms, which could come in form of brands & design, imaging, and

customer services (Porter 2004, Pg. 36)

Michael Porter (2004) argued that there is much need for firms to focus on a single generic

strategy. Adoption of two or more of the generic strategies, is a task according to Porter (2004, Pg.

39) impossible for any firm, and in other words could lead to what Porter referred to as Stuck in the

Middle.

According to Bodil Arbin et al (2006), the major critique with the porter generic strategy in the

mobile telecommunication Industry, is the high speed of the changing market, which makes it very

impossible to stick to one strategy, as requested by Porter. A study Titled Strategies in the

Colombian Telecommunication Market- seen through the perspective of Porter (2004) by Bodil

Arbin et al (2006, Pg. 2) was aimed at understanding how mobile phone operators in developing

countries compete with each other in terms of strategy and how porter three generic strategies are

most applicable in the industry. In the study, operators such as DLA, still entering the Columbia

market, used low prices or price cut to penetrate and gain market, with an intention to attract large

volume of mobile subscribers through cost leadership advantage, which turned out to be a short-term

success. This was due to the fact that Pioneer companies such as COMGeL and MOVISTAR,

imitated the same, with an inclusive of new technological services.

Fernandez and Usero (2009) in there book Competitive Behaviour between Pioneers and

Followers in the European Mobile Telecommunication Industry, conducted a research on a


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comparison between already existing mobile network providers and new entrants as a battle between

price cut against reduction. Price reduction was described as a constant variable used by network

providers for the aim of aggressive market penetration. This in turn has reduced profitability

(Decrease on ARPU) in the industry as a whole. In an industry characterised by pre-paid or pay-as-

you-go services, reduced tariff can never be a major determinant of customer loyally or satisfaction

because of the imitable range of offers given by the providers. In current industry circumstances

there is much need for firms to create value through differentiated services, which would compensate

for the decline of average revenue per unit (ARPU). According to Grant (1996: 219), mobile

operators strategically offering a price-cut can never make a market-leader in the competitive

environment. This calls for the need for value creating contents or services.

Research carried out by Plunkett (2006) titled Wireless and Cellular Industry Trends which

looked into increasing emergence and popularity of 3g mobile value added services, it identified as

the major differentiator across the mobile service operators. Through a field survey, service

adoption including consumers preference where identified and measured.

The research provided much insights on the market expectation of value added services, backed with

the analysis revealing that convenience, speed, and content as being the overall factors affecting

mobile service preference. One other major insight from the study, was that majority of the

respondents, preferred information delivered via SMS based platforms- which the survey said gained

more market share and attention.

Bill Anckar and Davide DIncae (2003), made a study titled Value Creation in Mobile

Commerce. The study highlights the importance of setting out from a consumers perspective when

developing mobile-commerce business and marketing strategies. The reports of the paper where

made from a survey carried in consumers willingness to use some selected 3g value added services

and also to explore whether the consumer recognises the value proposition of most of the services

available. In an overview, the study created theoretical and empirical insights on value creating


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features of m-commerce such as mobile-banking and transactions from a consumers standpoint.

Cronin, J.J., M.K. Brady and G.T. Hult (2000) identified rich and fast information, security, privacy,

and time and location convenience as major determinants for the adoption of mobile-commerce

services.

2.2 DEFINITION OF CUSTOMER PERCEIVED VALUE

According to Minna Pura & Johanna Gummeras (2007, Pg. 35) in there research paper titled

Discovering Value Perception for Mobile Services with Critical Incident Technique (CIT)customer

perceived value takes into account what customers want and believe they get by using a selected

service. Below are numerous literatures and there definition of Customer Perceived Value (CPV).

Farrell O C and Michael Harthron (2000) defined perceived value as the customers subjective

evaluation of benefits relative to cost to determine the worth of a firms product offering relative to

other product offerings. Benefits include service quality, satisfaction level, convenience, and the

problem it solves.

According to Zeithaml (1988), he defined perceived value as the consumers overall assessment of

the utility of a product based on perceptions of what is received and what is given. His definition was

coined from various research respondents view on value. Some respondents in Zeithaml (1988)

research, viewed value as low price, indicating that what they had to give up was more salient in

their perception of value (PG 13), while most other people based there definition as a subjective

measure of the usefulness or satisfaction that results from consumption (Pg.13).

Snoj et al (2004, Pg. 157), described value as being conceptualised as a customers perceived net

trade-off received from all relevant benefits and cost or sacrifices delivered by a product or service


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and it use. Snoj et al (2004, Pg. 158) made a generalisation from different authors view on perceived

value, into four substantial denominators, which are: (1) That value for a customer is related to his

expertise or knowledge of services in the product, (2). Perceived value is a multidimensional concept

and cannot be clearly defined by an organisation, (3) Perceived value presents a trade-off between

benefits and sacrifices perceived by customers in a service offering (Pg. 158)

Woodruff (1997) in his study looked into the reason why customers value conception most times

diverges. One of such difference arises with the way definitions are constructed. Most of the

definitions rely on terms such as utility, worth, benefits and quality. (Pg.141). In the end, Woodruff

(1997) defined perceived value as a customers preference for and evaluation of product attributes,

performance, and consequences arising from the use of that facilities in achieving the customers

goals and purposes. The definition in-corporates both desired and received value and makes

emphasis on letting organisations and firms know that value is actually a factor of the customer that

uses it.

Rokeach (1973, Pg. 159) as cited by Miriam Menmen (2011) quoted that Perceived value can be

defined as an enduring belief that specific mode of conduct or end-state of existence is personally or

socially preferable to an opposite mode of conduct or end-state of existence. Values in general are

seen as determinants that are much considerable or rationally related to features, dialogues or social

behaviour (Miriam Menemn 2011, Pg. 33)

According to Bijana Angelova (2011, Pg. 240), she defined customer perceived value as an opinion

about something viewed and accessed and it varies from one customer to another. Customers

according to the author have different beliefs towards certain services and product, which otherwise

is an important element in determining purchase decision.


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Customer perception goes hand in hand with purchase intention, making perceived value more of a

subjective factor, which provides organisations in there Customer Relationship Management useful

strategies.

2.2:1 CONSUMER BEHAVIOUR

Over the years consumer behaviour has been a major area of industrial marketing which have

received little amount of attention in past researches. Studies made on consumer behaviour have only

looked on why people buy, but recently it has been a combined factor of HOW and WHY

people go for a particular product or service.

Jim Blythe (1997) in his study looked into the motives behind consumers behaviour. He

distinguished motives as being from instinctive and non-instinctive perception of need. The author

further sub-divided motive into 2 distinct dimensions which he described as Rational/Conscious/

primary ends or the Dormant/Entertainment/Secondary ends. Psychologically, motives are behind

consumer behaviour arising under the basis of NEEDS and WANTS. According to Jim Blythe

(1997, Pg. 32), he described needs as a consumer behaviour based on the perception of lack of

something, which should make life more pleasant or convenient As Quoted by Jim Blythe (Pg. 33)

Unless the individual understands on how the proposed product will make a positive difference

to him or her lifestyle, the product would not be perceived as filling a need, and the individual

will not want it.

One of the major difficulties in understanding consumer behaviour is that most of the times people

are so unable to specify what actually drove them to specific actions. Some of the reasons attached to

this are that most times motivation is an act of subconscious mind. This led to the distinction of

intentions behind motives to be based on the hedonic and utilitarian value which they generate for

the customer.

Wayne D Hoyer and Deborah J Machnnis (2008), defined Hedonism as a pursuit of pleasure or

the search of goods/services, experiences, that simply make them feel good, such as beauty of a car,


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rather than its performance and style of a cloth rather than its purpose irrespective of weather.

Blythe James (1997) also supported the description of hedonism as being a purchase which is

triggered by desire of comfort and pleasure, with an exclusion of its functionality.

This brings about the direct opposite of hedonism, which is Utilitarianism. Utilitarianism is strictly

based on the school of practicality, functionality, and performance. Most research has come to study

the relationship and the struggle for power between the two terms and their behavioural influence.

According to Mudie, P. & Pirie (2006), two distinct features are prominent in consumer behaviour,

and they are expectations before purchase and perception after purchase. Expectation as described by

Mudie, P. & Pirie (2006) is developed prior to the service usage or pre-purchase. They normally

reflect consumers belief on what will or should happen while using a product or service (Pg. 7),

while perception is an attitude which develops during service usage. The author in his study defined

perception in the mobile sector as an evaluation of service rendered to customer in relation to

expectation. As a result of this, customer satisfaction is achieved when perception matches or

exceeds expectation (Mudie, P. & Pirie 2006, pg. 8).

Minna Pihlstrom (2008), study titled Perceived Value of Mobile Service Use and Its

Consequences analysed the influence of emotional, functional, monetary, social, and convenience

value on customers intention to use, and willingness to pay a price premium. The author looked at

the difference between information and entertainment mobile services and how the above mentioned

value dimension influences the customer buying decisions and behaviour. Perceived value as defined

by Mina Pihlstrom (2008, Pg. 734), is a multidimensional construct consisting of a monetary,

convenience, emotional, social, conditional, and epistemic value (Sheth et al 1991).

In the mobile sector, multi-dimensional view of value, is highly encouraged because of its

managerial implication and contribution

Sheth J. N et al (1991), made a study titled Why We Buy What We Buy. Sheth et al (1991)

developed the value theory to explain the motives and reasons why consumers make the choices they

do.


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Illustrations on the research where examined on consumers choice on cigarette brand and choices

whether to use or not. Sheth et al (1991, Pg. 160)) identified three fundamental propositions as being

automatic to the Consumer Value Theory.

Consumer choice is a function of multiple consumption value

The consumption value make differential contribution in any given choice

The consumption values are independent

Consumers decisions are based on three levels of choices, according to Sheth (1991), which are;

Decision to use or not to use

Decision on type of service to use

Decision on brand chosen from available alternatives.

These decisions are all influenced by the proposed five dimension of value, namely: functional,

emotional, social, epistemic & conditional value (Sheth 1991, Pg. 392). The five value dimensions

are defined as content & context related value dimensions in the mobile sector, because consumers

choice of mobile service use is based on the value benefitted from use of that service. According to

Sheth et al (1991), consumption value theory is exemplified where the consumers intention to use or

purchase are based on how they interrelate or discriminate the 5 value dimensions.

2.2.2 BRIEF DISCUSSION ON THE VALUE DIMENSIONS

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Diagram 1. 5 Value Dimensions as described by Shelt (1991)

EMOTIONAL VALUE: Shelt et al (1991) described the emotional value as a feeling produced in

consumers by a product or service. Products with the ability to elicit emotions such as artistic,

entertainment, religious products are major examples. According to Hussein & Amirhosin (2012, Pg.

226), a product acquires emotional value when associated with precipitated or perpetuating feelings

aroused from its use.

As described by Hirschman, E. C., & Holbrook, M. B. (1982), hedonic consumption involves multi-

sensory fantasy and emotive aspects of an individual experience with the product. In the context of

mobile services, most consumers rather prefer on demand fun, excitement and memorable

experience attached with the use of the service. Mobile services such as caller-back tunes,

ringtones, music download, jokes, all have an emotional attachment in their use. Most of them

acts as a reference reminding you a moment in your life or arising a specific feeling which you

associate with a relationship or experience.

FUNCTIONAL VALUE:Functional value can be said to be value derived from interconnectivity

of assured performance, ease of use, expenditure associated with use of service. Shelt et al (1991)

described the functional value as being utilitarian in nature, or a decision made by the consumer on

MOBILE

VALUEADDED

SERVICES

SOCIAL

VALUE

CONDITIONAL

VALUE

FUNCTIONALVALUEEPISTEMIC

VALUE

EMOTIONAL VALUE


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basics of functionality and rational attributes. Due to interrelationship between value variables, most

researchers believe that functional value can be divided, into two sub-value dimensions, which

are monetary and convenience value or in other words can be said to be a mixture of convenience

and price/cost of service usage

According to James William Martin (2011, Pg. 35-36), in his book Doing What Works,

convenience value was defined as a combination of time and benefit. The author defined time in

the context of speed of obtaining value from a service, while benefits he described as a

combination of three sub-elements which are importance, helpfulness, and usefulness. In

summary, Functional value is a combination of Price + Time + Importance + helpfulness +

usefulness.

.

According to Minna Pura (2007, Pg. 40), who supported James W. M (2011) view, the

convenience value has been a major drive for consumers acceptance and adoption of mobile

technology. Convenience value in the mobile service context is gained through speed and ease of

use, compared to alternatives (Pura Minna, 2007, Pg. 40).

SOCIAL VALUE: As the name implies, is derived from environmental and social influences

associated with the use of a service or product (Sheth et al, 1991). It mostly arises through a social

group or class referral such as Family, Friends, Colleagues and Partners. Most times motives behind

a consumers purchase and use of a service depends on how the consumer wants to be seen in the

society (Pg. 764). This value dimension satisfies self-gratification or acceptance from the public.

EPISTEMIC VALUE: Shelt et al (1991) described epistemic values as values arising from

curiosity, and novelty seeking, which most researchers will tag as Personal innovativeness. Products


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which satisfy curiosity, provide information and enhance knowledge are purchased for their ability to

meet epistemic Need (Pg.392). In his own words, Sheth et al (1991) defined epistemic value as a

perceived utility acquired from an alternatives capacity to arouse curiosity, and provide novelty and

satisfy a desire for knowledge.

It is mostly the value given to a service or product associated with an entirely different change of

pace or entirely a new experience. Most times, alternatives are chosen because the user is Bored

or Satiated with his or her current brand). Such curiosity arises from trying a new type of food or

going on a holiday through a new means of transportation or route. Or the curiosity which arises on

wanting to know what it feels like using an iPhone.

CONDITIONAL VALUE: According to Sheth et al (1991), conditional value arises in situations

which impact choice such as situational or emergency situations.

Sheth et al (1991, Pg. 167), defined the conditional value as being measured on profile of choice

contingencies.

According to Marianna Sigala (2006) he defined conditional value in the mobile context as value

existing in a specific context whereby customisation options allowed by the ICT system, results also

in configured information and services according to the users preference and needs.

According to Minna Pura (2007, Pg. 38), the conditional value can be sub-divided into other value

dimension, which the author described as time, location, access and uncertainty. He described the

uncertain situation arising from emergency, whereby location based services play a major difference.

Examples of mobile services in this value category are vehicle tracking, and mobile navigation,

mobile-banking services and credit alerts.

2.3 RESEARCH MODEL AND HYPOTHESIS DEVELOPMENT


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Past researches made on consumer behaviour have found that functionality alone is not enough to

determine users adoption of a new technological platform. This has raised such much attention on

current studies in understanding individuals acceptance of information technology, such as 3G

mobile services in the ever fast advancing globalised world.

Davis (1989) developed the Technology Acceptance Model (TAM), in order to explain

individuals acceptance and attitudes towards the use of information technology. The model clearly

illustrated that users intention to use a new technological platform is a major function of the users

believes and expectation about the system (Gretzel et al, 2010, Pg. 200. Information and

Communication in Tourism). Davis et al (1989) identified two value factors which where the most

determining factor on influencing users intention to use or accept a new system. This two factors

where perceived usefulness and perceived ease of use.

The development and relationship between perceived usefulness and perceived ease of use

originated from Fishbein and Ajzen (1975) theory of Reasoned Action. According to Fishbein

and Ajzen (1975), the theory of reasoned action, was a theoretical model which inclined that

individual behaviour is a factor of his pre and post intentions to use, in relationship with expectations

the person will have of the product or service. This definition also justified Ajzen & Fishbein (1980)

Expectation Value Model.

According to a study made by Mohammed Chutter (2009, Pg. 3), Fishbein and Ajzen (1980)

proposed behavioural intention as being a subjective norm associated with the behaviour in question,

which Mohammed Chutter (2009) defined subjective norm as a behaviour associated with a persons

perception on what most people who are important to him, think he should or should not do as an

individual. From Mohammed Chutter (2009) definition, subjective norm could be said to be a

summation of an individuals perceived expectations being influenced by a society or selected group.

In the search for an in-depth understanding of individual intention, Fishbein and Ajzen (1980) saw


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the need to inquire on determinants of the individual attitudes and subjective norms which influence

the belief individuals hold of themselves and the external environment.

Davis (1985), ten years later, adopted the model of reasoned action, which made up for the rationale

development of technology acceptance model (TAM). Davis (1985) saw the model of reasoned

action more as a model to explain individual behaviours, while he made two major

adjustments/changes to it. One of such adjustment is the exclusion of a subjective norm in predicting

individual behaviours, whereby Davis (1985) considered only Individuals attitude and secondly, the

development of the two distinct beliefs which are perceived Usefulness and Ease of Use/.

According to Gretzel et al (2010, Pg. 211), perceived ease of use and usefulness affects attitudes in

two distinct ways: one is, convenience and the other is on functionality, whereby the simpler the

interaction with a system, the greater the individuals sensation of efficiency and control. According

to Davis (1985) as quoted what is the usefulness of Technology, when it so hard to use. One other

major distinction of the TAM from TRA is that the former lays more focus on users acceptance of

information technology. The two major constructs of the model which are perceived usefulness and

ease of use are found to be most relevant in the context in which the study is being made; which are

users adoption of 3G devices and value added services in the society at large

Bandura (1982) emphasized on the importance of putting into consideration the two factors in

predicting individual intention.

Bandura (1982) defined perceived ease of use as a notion of self-efficacy, which is based on the

belief on how well an individual can execute actions required to deal with a solution, whereas he

defined perceived usefulness as the extent to which a behaviour once successfully executed is

believed to be linked to a valued outcome (Mohammed Chuttur, 2009, Pg. 4).


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One major stronghold of the technology acceptance model is the curiosity within the consumers to

use a particular service or product which arises as a result of so many personal factors. One reason

could be to satisfy an individuals ego of having to be a part of a particular trend or just for the sake

of having to know what it feels like using a particular product.

2.1 SELF CRITIQUE OF PAST RESULTS ON INNOVATIVENESS AS OPPOSED BYNIGERIAN SOCIO-ECONNOMIC STRUCTURE

Many researches have always associated personal innovativeness with technology acceptance model,

whereby sales personnels can quote if u havent used it, how can u know if is useful or easy to use.

In the other way round, this could be quite true, whereby the urge to try out a particular service or

product, allows them to deliver their own independent judgement. Referring on the epistemic value

discussed in the literature review, which is a form of perceived value arising out of curiosity and

novelty satisfaction, Agarwal & Prasad (1998) proposed the concept of personal innovativeness,

which they simply defined as the willingness of an individual to try out new information technology.

Most researchers have characterised the term as a risk-taking propensity of individuals (Agarwal &

Prasad, 1998). According to Parasuraman & Colby (2001), they described the technological product

and service market, as a world, whereby developers target individual with high innovativeness at the

initial stage of a product or service market entry, tagging them early adopters by Parasuraman &

Colby (1991). But in my own view, this calls for a need to raise an argument requiring an urgent

answer with respect to my research. If the developers interest is to target individuals with high

innovativeness, whereby these individuals are characterised to be more educated, well-travelled,

more prosperous in terms of being able to afford a new technology despite the cost and finally more

highly risk oriented, what influences the rest of the society to go on the same trend with the early

adopters or innovator?, Does the early adopters have an influence on raising the majorities curiosity

to use a particular service?.


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In my own view, the answer is a big YES. Taking a look at the technology adoption lifecycle

model which was developed by Joe M Bohlen and George M Beal (1957), describing the adoption or

acceptance of a new technology being a factor of the demographic or psychological characteristics of

a defined set of group. The same model was expanded to be named diffusion acceptance model

by the same group of researchers, whereby they described how the use of a new technology were

spreading in different cultures. The first group of people to use technology according to the model

are the early adopters who are closely watched by neighbours or the community surrounding them.

So to say, if demographic and psychological profile of society can have an influence on their

adoption flow, we can conclude that peoples behaviour can be influenced by their peers, superiors,

mentors, family, and neighbours.

These people inevitably make up an assumed socio-cultural group. Nigeria is one country where

culture cannot be left out if you want your business to strive. Nigeria culture is characterised by its

close knit strong family ties, defining a proper extended family system. It is a common practice for

an employed individual in a family taking the responsibility of a bread winner for the family linage

at large. There is a high volume of dependency culture in the society, which directly and in-directly

influences the widespread of actions which people take. According to Kotler (2009), he described the

society as having to play a significant role in shaping the beliefs, values, and norm, which in-turn

shapes the consumers tastes and choices. And so, for the above defined reasons, my research will

make an extension of technology acceptance model by making a hypothesis on the significance of

social influence on the adoption of 3g value added services as a whole.

Past researches made on consumers innovativeness on value added services mostly in developing

countries have made little or no effect on adoption partner. I believe there is need to re-focus our

attention on societal influence rather than innovative influence on consumers choice and intention

for mobile service usage.


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2.4. PROPOSED HYPOTHESIS FOR THIS STUDY

2.4.1 Perceived Usefulness, Perceived Ease of Use

Several surveys have been studied in the past, making extensions to the original TAM on consumers

adoption of mobile services. One of such survey is by Pagani (2004), in his research titled

Determinants of adoption of third generation mobile multimedia services, he made an extension

of the original TAM with external variables such as Output & Input devices, speed, user friendliness

and feedback as having influence on Perceived Ease of use, while external factors such as Service

offering, price, degree of mobility, and compatibility had its major share of influence on Perceived

Usefulness.

Diagram 2. Adapted from Pagani (2004) Determinants of Adoption of Third Generation Multimedia Services

The Technology Acceptance Model inclines that adoption of mobile services is positively

determined by users intention to use, which is influenced by Perceived Usefulness and Perceived

Ease of Use. Past studies made on TAM have noted Usability as an important factor in determining

the success of mobile service penetration in a given society.


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The Usability of Mobile Services is mostly based on Content, Interactivity, Transaction Cost, Speed,

and Reliability.

Diagram 3. Proposed Version of the Technology Acceptance Model .for the research

According to Davis (1986) he defined formally the two constructs as follows:

Perceived Usefulness is the degree to which an individual believes that using a particular system

would enhance his or her daily societal and environmental performance

Perceived Ease of Use is the degree to which an individual believes that using a particular system

would be free of physical and mental effort

HI: Perceived usefulness has a significant effect on consumers attitude to use 3G mobile

services

H2: Perceived ease of use has a significant effect on consumers attitude to use 3G Mobile

Services

H3: Perceived Usefulness has a direct significant effect on consumer intention to use 3G mobile

services.

Hi Perceived Usefulness

H2 Perceived ease of use

H3 H6

H5 Social Influence Behavioural intention to use Actual Usage

H7 Perceived Enjoyment

H4 Attitude towards use


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2.4.2 Attitude Towards Usage.

According to Ajzen (2008, Pg. 28), he described attitude as a summary evaluation of a psychological

object captured in such attribute dimension being either Good-Bad, Useful or Useless, Harmful-

Beneficiary, Pleasant-Unpleasant and finally Likeable or dislikeable.

The psychological object being captured can also be seen as an emotional, rational, or self-satisfying

pre-disposition with regards to services and products in the mobile context. Some of the well-

established theories on attitude is the Tri-Component Model, which studies the relationship

between attitude and buying behaviour of an individual.

The Tri-component Attitude Model is a modification of Robert J. Lavidge and Gary A. Stern (1961)

Hierarchy of Effects Model. The Hierarchy of Effects Model is a seven step model on

customers decision making process about actions they want to take in buying a product. The seven

steps are: unawareness, awareness, knowledge, liking, preference, conviction and finally purchase. In

2000, Leon G. Schiffman condensed the seven stages into three (3) theoretical categories, giving rise

to the Tri-Component Attitude Model, which are named as the cognitive component which

represents an individual knowledge about a particular product.

Affective component which describes an individuals intention to think or act in a particular way

which are mostly based on person emotions and feeling, and finally the conative component which

consists of individual final tendency to undertake specific actions or behaviour towards a product.

H4: Users Attitude Towards 3G mobile services has a significant effect on behavioural

intention to use the services

2.4.2 SOCIAL INFLUNECE


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The two constructs perceived usefulness and perceived ease of use are also not free from external

factor influences. Technology Acceptance Model proposes that perceived usefulness and perceived

ease of use affects usage attitude which in-turn affects intention to use and the actual usage. In order

to address the issues on external factors influencing perceived usefulness and ease of use, additional

changes were made by Venkatesh & Davis (1996), which proposed two distinct categories being the

Social Influence Category and Cognitive Instrumental Category.

According to William M. Pride and Ferrell O.C. (2011.Pg. 216), he defined social influences as

forces which people/group exert on a consumers buying behaviour. These forces could either come

from roles which they occupy, family, reference group, social class, and culture.

Michael Baker et al (1998), group influences is always geared towards conformity, and its tendency

to show in the decisions of an individual depends on the pressure the group bears on the individual

and the level of importance of the group to the individual.

Venkatesh and Davies (1996) further sub-categorised the social influence into a subjective norm.

According to Fishbein and Ajzen (1975), subjective norm is described as an individuals perception

that most people who are important to him think he should or should not use a particular technology,

which in-turn perceives its use as an enhancing factor for ones status within a social group.

Venkatesh and Davies (1996) in there study concluded that subjective norms has a significant effect

on intention to use new technology.


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Subjective norms are found to be important factor on individuals pre purchase decision, mostly when

the person still has a little or limited knowledge of the product or services, prior to a development of

attitude towards the product.

H5: Social Influences have a positive significant effect on consumers behavioural intention to

use 3G Mobile Services

H6: Social influences have a positive significant effect on actual usage of 3G mobile services.

2.4.3 PERCEIVED ENJOYMENT

Motivation behind consumers adoption of a product or service can be divided into two types:

Hedonic and Utilitarian Motives. Due to survey clarification, there is always the need to make a clear

distinction between the Hedonic and Utilitarian motives underlying consumers behaviour.

Sweeney D.R. (2007, Pg. 24), who made a study on the motive behind spectators values attached to

attendance to a sporting game, found that consumption for sporting activities had hedonic motives,

because for many people, sporting is a form of entertainment whose value is derived from the

enjoyment associated with the game. This is where emotional value comes into play, whereby

enjoyment is the utility derived from the sports game.

This makes hedonism totally different from Utilitarian motive, whereby the former is based on

excitement and pleasure derived, the latter is solely based on usefulness or efficient performance of

the product or service as perceived by the consumer.


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With a utilitarian motive, judgement and evaluation of a product is based on objectiveness, while that

of a hedonic is much influenced by intrinsic feelings towards the product. Within the TAM construct

for the study, Hedonic (Intrinsic) motivation is captured as Perceived Enjoyment (PE), while

Utilitarian (extrinsic) motivation is captured as Perceived Usefulness. According to Stefanos

Chatziagapias (2008), he defined perceived enjoyment as the degree to which a person believes that

the use of 3G services will be interesting and associates its use with enjoyment.

H7: Perceived enjoyment has a significant effect on consumers behavioural intention to use

3G mobile services.

.

CHAPTER THREE

METHODOLOGY

3.0 MEASUREMENT INSTRUMENT

Based on the purpose of the research topic, which looks into the relationship between consumers

perception of 3G mobile services and their behaviour towards its use, there is a need to make our


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research deductions from individual viewpoints. This brings about clarity on the appropriate research

design to be an integration of both qualitative and quantitative research with sample surveys, which

will give me the researcher the ability to quantify consumers perspective towards an experience.

According to Denzin and Lincoln (1994), they described qualitative research as a multi focus method

which studies subject matters in their natural settings, in attempt to make sense or interpret

individual experiences in their everyday life, while the quantitative approach according to Isadore

Newman and Carolyn R Benz (1998, Pg. 3), is defined as being a naturalistic approach used when

observing and interpreting reality with the aim of developing a theory that will explain what was

experienced. With regards to already proposed research questions, which were hypothesis made out

of proposed modified model of the Technology Acceptance Model, in order to understand customer

perceived value towards usage of 3G mobile value added services, there is a need for test of

confirmation or disconfirmation of the hypothesis through a quantitative approach.

This study will make use of a sample survey as its data collection instrument, in the context of 3G

mobile services, whereby respondents will be asked to express their level of agreement or

disagreement for various perceived value constructs. As cited in the Handbook of Statistics (2009,

Pg.3) according to Mahalanobis (1965, Pg. 45), one major advantage of survey samples, if

properly designed and conducted , is that it can supply at a great speed with low cost, sufficient

information accurate for practical purposes with the possibility of ascertainment of the margin of

uncertainty on an objective basis. Due to variety of data collection and measure processes, most

researchers tend to look at survey sample through the characteristics which make it up rather than a

generalised definition.

According to Floyd J-Fowler (2002, Pg. 1-2), he described it based on 5 characteristics, but three (3)

of it will be mentioned regarding the context of this research. And they are:

Sample Survey produce statistics which are numerical descriptions about some aspects of the study

population


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The main form of data collection is through pre designed questions administered to people,

whereby their answers constitute the data to be analysed

Patterns of consumer expenditure and expectation are major predictors in analysing the social &

economic trend

Some other researchers such as Singh & Chaudhary (1986, Pg. 3), view the need for online sample

survey under its conditions of use, such as limited budget, constraints in time, money, resources, and

high cost of analysing a large population sample.

With regards to this research thesis, the above proposed conditions for the use and characteristics

of sample survey fits very well, due to limited amount of time, money, and the need for numerical

description of respondents and analysis of their answers. The research will make use of a web-page

questionnaire survey, which according to Fenech & OCass (2001, Pg. 361), provides a single

common medium, which makes it very easy for respondents to fill and have an automatic return of

forms, non-exemption of questions, and also an automatic transfer of data back to the analytical table

without a manual entry. Although one major problem of the web-based survey is the non-coverage

error, due to the exclusion of individuals without an internet access and most times lazy attitude of

respondents towards online forms. This attitude can be a factor of different reasons, such as

respondents feelings that his/her response doesnt make a difference in the outcome of the research

or most times not being too sure of terms being used.

3.1 SAMPLE AND DATA COLLECTION PROCEDURE


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3.1.1 Sample Selection

In this research thesis, the target population is Nigeria, in pursuit of their consumer behaviour

influenced by value perception towards 3G mobile value added services. The study made use of a

non-probability sampling technique in conducting its sampling process. This will give rise to a snow-

ball sampling technique in the course of the survey. Hence, bulk of the survey is conducted based on

respondents referrals, which will help me to reach the expanded marginal and scattered population.

Due to time, financial and physical accessibility constraints, participants were selected based on their

accessibility to the internet, which allowed a quicker response and feedback to contribute to the

research. In the study, questionnaire was distributed via Facebook and email with the use of a survey

tool called Google Survey. The Google Survey is a web-based survey site which enables you to

self-design an online questionnaire form/tool called the Collector. Through the creation of a

Facebook or Email collector, you are able to distribute, track responses, set reminders and place

direct links of your designed questionnaire on friends list and contact address.

One of the major advantages of the using the Facebook and Email is that it allows you to specifically

target your participants, who in-turn makes their own referrals, thereby eliminating familiarity and

biases between the researcher and the respondents. The target respondents of the survey are

Nigerians across different states of the country within the age bracket of 16-65 years, having access

to the internet as earlier mentioned with an active Facebook and Email account.

3.1.2 Sampling Technique

Questionnaire was designed in such a way it paid attention to the simplicity of the questions and

respondents intellectual level. Due to the inevitable fact, that most respondents might not really

understand the term 3g mobile value added services, an introductory paragraph will be placed on the

beginning of relevant pages in the questionnaire defining distinctive terms.


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According to Malhotra & Birks (2000, Pg. 326), questionnaires are known to have 3 specific

objectives which are: the need to translate needed information into questions, increasing the

motivation of respondents to answers through clarity of questions and finally minimiz

disserattion on value perception on the use of mobile services

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